When construction projects go awry, construction contracts can be the legal document that saves everyone involved a lot of money, stress and effort. Whether you are a Texas contractor or property owner, it is important to have a clear understanding of the relevant law and what your construction contract should include.
What is a construction contract?
A construction contract is a legally binding agreement between two or more parties, usually involving the construction of some kind of property. The contract sets out the terms and conditions of the project as well as each party’s obligations and rights.
Why do you need one?
Construction contracts are important because they help to clarify the roles and responsibilities of everyone involved in the construction project. This can help to prevent misunderstandings and disputes which can often lead to costly legal battles.
What should a construction contract include?
One of the most important things to include in a construction contract is the project’s scope of work. This should be a detailed description of the project as well as any materials or equipment that the project will require. It should also include any milestones or deadlines.
Another important thing to include in a construction contract is the payment schedule. This should outline how and when payments will be made to each party involved in the project. Finally, a construction contract should include a dispute resolution clause, which frequently specifies arbitration.
If you don’t have a construction contract, the law will still apply to your project and will govern how the project is to be completed and any disputes that may arise. It is always advisable to have a construction contract in place though, as it can help to avoid costly legal disputes.
